eXp UK has struck a new mortgage partnership designed to give estate agents a direct financial stake in the advice process in a move that challenges the traditional referral-fee model widely used across the industry.
The firm has aligned with brokerage Nexpad in a deal that will see the adviser become the primary mortgage partner to eXp UK’s network of more than 900 agents, while operating as an Appointed Representative of HLPartnership.
Unlike most estate agency–broker arrangements, the structure allows agents to earn equity in the mortgage business based on usage and referrals, rather than receiving a one-off introducer fee.
eXp says the model is intended to bring mortgage advice earlier into transactions while also giving agents a share in the long-term value created by the work they generate.
REDUCE FALL-THROUGH RISK
The partnership will allow agents to introduce buyers into a regulated mortgage journey sooner, with the aim of improving deal visibility, reducing fall-through risk and keeping transactions moving.
Adam Day (main picture, inset left), Head of eXp UK and Europe, says: “One of the biggest issues within the industry is that agents are often expected to generate significant value through referrals, particularly when it comes to mortgages, but see very little of that value beyond a one-off fee.
“In many cases, they are effectively helping to build someone else’s business without ever sharing in the success of it and that’s something we fundamentally disagree with.”
CREATING VALUE
He adds: “At eXp UK, we believe that if our agents are contributing to the growth of a business, they should benefit from that growth, whether that’s through a stronger share of the revenue being generated or through longer-term alignment as the business scales.
“This partnership is a clear step in that direction. It not only strengthens the support we provide to our agents and their clients but also ensures that the value being created is shared far more fairly with the people driving it.”
CULTURAL ALIGNMENT
Stuart Dare (main picture, inset right), CEO of Nexpad, adds: “Securing a national contract with eXp UK gives us a strong starting point. Home buying is time-sensitive and often slowed down when advice is introduced too late. Nexpad has been built to bring regulated advice into the process earlier, improve coordination and support good consumer outcomes.
“What makes this so exciting for brokers is that national estate agency lead sources have traditionally been tied to employed (PAYE) roles, often with mandated in-branch presence.
“Uniquely, Nexpad gives brokers the opportunity to be self-employed, manage their own diary and still benefit from the security and consistency of estate agency–driven lead sources. Our model is also very culturally aligned with eXp’s which will inevitably lead to some very strong agent/broker relationships.”
